Despite the uncertainty surrounding the impact of tariffs on global economic growth, the S&P/TSX Composite Index is up 12.5% year-to-date. The expectation of rate cuts by the United States Federal Reserve and healthy second-quarter performance appear to have improved investors’ confidence, driving the Canadian equity markets.
However, the following two Canadian stocks have failed to impress investors and lost a substantial percentage of their stock value compared to their 52-week highs. Given their discounted stock prices and healthy growth prospects, I believe investors can start accumulating these stocks to reap superior returns over the next three years.
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Docebo
Docebo (TSX: DCBO) offers an end-to-end learning platform that aids enterprises in scaling and personalizing their learning across their businesses and user cases. Departure of key executives, rising competition, and expectations of growth slowing down have weighed on investors’ sentiments, dragging its stock price down. The company has lost around 42% of its stock value compared to its 52-week high. Amid the steep correction, its NTM (next 12 months) price-to-earnings multiple has fallen to 22.
Meanwhile, the Toronto-based e-learning platform provider posted a healthy second-quarter performance earlier this month, with its topline coming at US$60.7 million – beating the management’s guidance of $59–$59.2 million. Year-over-year, its topline grew 14.5% amid new customer additions, increased average contract value, and the favourable impact of currency translation. Meanwhile, its net income came in at $3.1 million, representing a 34.5% decline decline from the previous year. However, removing special or one-time items, its adjusted net income came in at $8.9 million or $0.30 per share, representing a 15.4% increase from the previous year’s quarter. With $64.6 million of cash and cash equivalents at the end of the second quarter, the company can fund its growth initiatives in the coming quarters.
The growing adoption of remote working and learning, the rapid digitization of businesses, and technological developments have expanded the global LMS (learning management systems) market. Meanwhile, Markets and Markets predicts the LMS market to grow at an annualized rate of 18.6% through 2028. Moreover, Docebo continues to invest in artificial intelligence (AI) to develop and introduce new features that can strengthen its position. The company’s management projects its topline to grow by 10–11% this year, while its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin could fall between 17% and 18%. Given its healthy growth prospects and discounted stock price, I expect Docebo to deliver superior returns over the next three years.
BlackBerry
Second on my list is BlackBerry (TSX: BB), which has lost around 43% of its stock value compared to its 52-week high. Despite its better-than-expected first-quarter performance of fiscal 2026, the company has been under pressure due to the broader macroeconomic concerns, weakness in the automotive sector, which is the primary market for its QNX platform, and rising competition in the secure communication segment.
Meanwhile, the secure communications solutions provider is focusing on diversifying its business beyond the automotive segment into its adjacent verticals, such as robotics, industrial automation, and medical devices, thereby positioning itself for long-term growth. Further, it is also launching new innovative products and customer-facing applications to strengthen its market share in the automotive segment. Additionally, the higher net retention rate in its secure communications segment provides stability to its financials. Therefore, given its long-term growth prospects and discounted stock price, I believe investors can start accumulating the stock to earn superior returns in the long term.
